Tesserent Ltd (ASX:TNT) has finalised the strategic acquisition of Loop Secure Pty Ltd, aimed at strengthening its ‘Cyber 360’ capabilities.
Loop is a leading Australian cybersecurity firm providing Managed Security Services, Governance Risk and Compliance (GRC) and Offensive Security services.
The cybersecurity firm’s service and solution offering is a strategic addition to strengthen Tesserent’s Cyber 360 capabilities, with immediate synergies and opportunities to leverage its corporate relationships and skills within Tesserent.
Chairmen comments
Tesserent chairman Geoff Lord said: “The addition of Loop Secure to the TNT group is a welcome one, cementing our position as the leading ASX-listed provider of cybersecurity solutions and services in ANZ and as well as contributing to our annual turnover and adding significant recurring revenue to the Group”.
Loop chairman Adam Davenport said: “After more than 15 years as a leading cybersecurity firm, I am delighted Loop Secure will become part of the Tesserent Group.
“The transaction provides Loop with immediate access to substantial resources and new opportunities and will allow us to continue our strong growth in the key cybersecurity domains of monitoring, consulting and solutions”.
Financials
Loop has an excellent operating record, with an unaudited FY2021 turnover of $18 million, delivering $2.25 million in EBITDA.
Notably, the last 12 months have continued to deliver strong growth with Loop bringing immediate earnings, cash flow and earnings per share accretion to Tesserent.
The consideration for the acquisition of Loop will be a mix of cash and Tesserent shares, being $9 million in cash and 15.9 million shares at a price of 28 cents.
The cash component is paid $7 million on completion with the balance paid out over 12 months which will be funded from existing cash reserves together with the earlier announced Pure Finance facility.
- Ephrems Joseph